Canada posted a wider-than-expected trade deficit of $1.47 billion in January, largely on lower exports of motor vehicles and parts, official data showed on Friday.
Analysts polled by Reuters had forecast a shortfall of $830 million. Statscan revised the December deficit up to $732 million from an initial $370 million.
The value of exports fell by two per cent in January, the largest decline reported since the 5.6 per cent decline in June 2019, to $48.14 billion, with nine of the 11 product sections tracked by Statscan posting declines. Imports dropped by 0.5 per cent, with declines seen in six of the 11 product sections.
Canada’s central bank slashed a key interest rate on Wednesday by half a percentage point, the most in more than a decade, as it worked to try and protect Canada’s economy from a coronavirus outbreak and said it was prepared to ease further if needed. Money markets anticipate another rate cut in April.
Statscan said on Friday it was monitoring the possible impacts of the coronavirus outbreak on Canada’s international trade data, particularly with China, where the agency said “substantial decreases in exports and imports with China” had already been observed in January.
Canadian monthly exports to China declined 7.8 per cent in January, with lower exports of gold, potash and wood pulp reported, the agency said, while imports fell 12.1 per cent, mainly on lower cellphone imports.
(Reuters)
Print this page
